Zacks Investment Research: Stock Research, Analysis, & Recommendations

For Q4, Tech sector earnings are expected to be up +13% from the same period last year on +15.8% higher revenues, reflecting the 10th consecutive quarter of double-digit earnings growth. AVGO slid 11% after Q4 results despite beating on earnings and revenues, as concerns over AI margins weighed on sentiment, making ETFs like SMH a safer way to play the dip. The Zacks #1 Rank List is the best place to start your stock search each morning. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score. Tracey Ryniec and Zacks Chief Equity Strategist John Blank look at the US economy and 5 stocks to buy in 2026 in the latest Zacks Market Edge podcast. Value stocks are stocks that are considered a good value relative to their intrinsic value.

• For example, it’s possible that high gas prices might lower the profits of transportation and delivery companies.
• The monthly returns are then compounded to arrive at the annual return.
• Most growth stock companies tend to plow gains directly back into the company rather than pay dividends.
• Shares will rise in value when the company is doing well, and they’ll fall in value when the company is doing poorly.
• People trade shares as a way to gain exposure to global economic health and growth, as well as an individual company.

Volatility can be an important measure of investment risk—both market-wide and for an individual stock. A common measure of a stock’s volatility relative to the broader market is known as the stock’s beta, which is how a stock’s volatility compares to the market a whole. A stock that has a beta above 1.0 means it is more volatile than the overall market.

The fair value is the intrinsic value of a stock based on the company’s fundamentals, while the market value is the amount that individuals are currently willing to pay for the stock. When you trade, you’ll be able to ‘buy’ (go long) to speculate on prices rising; as well as ‘sell’ (go short) to speculate on prices falling. You can trade with derivatives like CFDS – which are leveraged. This means that you only need to commit a deposit – known as margin – to receive full market exposure. But, remember that leverage can increase both your profits and your losses.

Investors seeking predictable income may turn to stocks that pay dividends. Stocks that pay a higher-than-average dividend are called “income stocks.” As with all earnings, you will have to pay taxes on dividend income. Your tax rate will depend upon various factors, including your tax bracket and how long you’ve held the stock. Qualified dividends are taxed at the lower long-term capital gains rate, while ordinary dividends—also known as nonqualified dividends—are taxed at the higher income tax rate.

Stock Investing Essentials

Learn what a stock is, how it works, and the benefits of investing. Understand stock types, dividends, and how to start buying and managing shares. Zacks Portfolio Tracker on Zacks.com provides 24/7 monitoring of your stocks and will give you the information you need to help you determine when to buy, hold or sell your stocks.

Best Quantum Computing Stocks to Buy for December 2025

You can take the payout as cash or reinvest your dividends to purchase more shares, potentially boosting your long-term returns. When people talk about investing in stocks, they’re usually referring to common stock. These investments let you share in the success of publicly traded companies—with the potential to grow your portfolio with them. Remember that stock prices can fluctuate drastically from day to day. Stocks are most appropriate for investors who seek higher returns and have the tolerance for short-term losses. When you trade stocks via leveraged derivatives like CFDs, you’ll only need to put down a deposit – known as margin – to receive full market exposure.

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But, there are tools that traders can use to manage their risk. For example, stop-losses enable you to define your exit points for trades that move against you, while limit orders will close a trade after the market moves by a certain amount in your favour. Stocks, shares and equities work by giving direct exposure to a company’s performance. Shares will rise in value when the company is doing well, and they’ll fall in value when the company is doing poorly.

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When the price of a stock increases enough to recoup any trading fees, you can sell your shares at a profit. In contrast, if you sell your stock for a lower price than you paid to buy it, you’ll incur a capital loss. If you’ve seen the jagged lines on charts tracking stock prices, you know that stock prices fluctuate daily and over longer terms, sometimes dramatically. The size and frequency of these price fluctuations are known as the stock’s volatility.

Preferred shareholders typically receive fixed-rate dividends—paid before any dividends are issued to common shareholders—and have a higher claim on company assets in the event of liquidation. Preferred stocks may appeal to investors who prioritize a more stable income stream and are comfortable with more modest growth potential. It represents ownership in a company and typically includes voting rights on key corporate matters. Common shareholders may receive dividends, but payments are not guaranteed and are issued only after preferred shareholders https://www.troycitymortgage.com/calvenridge-trust-review-intelligent-automation/ are paid. Common stocks tend to be more volatile, but also offer greater potential for long-term growth. Microcap securities, sometimes referred to as penny stocks, include low-priced securities issued by small companies with low market capitalization.

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Stocks owned either directly or through a mutual fund or ETF, will likely form the majority of most investors’ portfolios. Understanding what you are investing in — and the kind of return you can expect — takes research and analytical skill.